STRYKER CORPSYK

STRYKER CORP Segments Disclosure

10-KFiled Feb 11, 20263 min read
SEGMENT AND GEOGRAPHIC DATA
We segregate our operations into two reportable business
segments: (i) MedSurg and Neurotechnology and (ii)
Orthopaedics which aligns to our internal reporting structure and
how our Chief Operating Decision Maker (CODM) assesses
performance and allocates resources. The CODM is the Chief
Executive Officer. The CODM makes decisions on resource
allocation, assesses performance of the business, and monitors
budget versus actual results using segment operating income.
The Corporate and Other category shown in the table below
includes corporate and administration, corporate initiatives and
share-based compensation, which includes compensation related
to employee stock options, restricted stock units and
performance stock unit grants and director stock options and
restricted stock unit grants.
Segment Results
2025
2024
2023
MedSurg and Neurotechnology
$15,647
$13,518
$12,163
Orthopaedics
$9,469
9,077
8,335
Net sales
$25,116
$22,595
$20,498
MedSurg and Neurotechnology
$5,859
$5,320
$4,876
Orthopaedics
$2,570
2,400
2,254
Cost of sales
$8,429
$7,720
$7,130
MedSurg and Neurotechnology
$948
$784
$702
Orthopaedics
$524
540
508
Segment research, development and
engineering expenses
$1,472
$1,324
$1,210
MedSurg and Neurotechnology
$3,931
$3,203
$2,934
Orthopaedics
$3,132
3,111
2,922
Segment selling, general and administrative
expenses
$7,063
$6,314
$5,856
MedSurg and Neurotechnology
$237
$208
$181
Orthopaedics
423
433
386
Segment depreciation and amortization
$660
$641
$567
Corporate and Other
178
162
139
Amortization of intangible assets
732
623
635
Total depreciation and amortization
$1,570
$1,426
$1,341
MedSurg and Neurotechnology
$4,672
$4,004
$3,470
Orthopaedics
2,820
2,591
2,265
Segment operating income
$7,492
$6,595
$5,735
Items not allocated to segments:
Corporate and Other
$(889)
$(880)
$(780)
Inventory stepped up to fair value
(173)
(46)
—
Acquisition and integration-related charges
(335)
(108)
(20)
Amortization of intangible assets
(732)
(623)
(635)
Structural optimization and other special
charges
(191)
(138)
(170)
Goodwill and other impairments
(170)
(977)
(36)
Medical device regulation
(38)
(58)
(96)
Recall-related matters
(58)
(40)
(18)
Regulatory and legal matters
(17)
(36)
(92)
Consolidated operating income
$4,889
$3,689
$3,888
Segment Assets and Capital Spending
Assets:
2025
2024
MedSurg and Neurotechnology
$27,647
$23,115
Orthopaedics
18,641
18,507
Total segment assets
$46,288
$41,622
Corporate and Other
1,556
1,349
Total assets
$47,844
$42,971
Purchases of property, plant and
equipment:
2025
2024
2023
Orthopaedics
$296
$230
$179
MedSurg and Neurotechnology
220
276
183
Total segment purchases of property,
plant and equipment
$516
$506
$362
Corporate and Other
245
249
213
Total purchases of property, plant and
equipment
$761
$755
$575
We measure the financial results of our reportable segments
using an internal performance measure that excludes acquisition
and integration-related charges, structural optimization and other
special charges, goodwill and other impairments, reserves for
certain product recall matters and reserves for certain legal and
regulatory matters. Identifiable assets are those assets used
exclusively in the operations of each business segment or
allocated when used jointly. Corporate assets are principally
property, plant and equipment and noncurrent assets.
The countries in which we have local revenue generating
operations have been combined into the following geographic
areas: the United States; Europe, Middle East, Africa; Asia
Pacific; and other foreign countries, which include Canada and
countries in the Latin American region. Net sales are reported
based on the geographic area of the Stryker location where the
sales to the customer originated.
Geographic Information
Net Sales
Net Property, Plant
and Equipment
2025
2024
2023
2025
2024
United States
$19,006
$16,943
$15,257
$2,084
$1,997
Europe, Middle
East, Africa
3,181
2,897
2,618
1,562
1,260
Asia Pacific
2,164
2,020
1,946
97
75
Other countries
765
735
677
133
116
Total
$25,116
$22,595
$20,498
$3,876
$3,448

Historical Timeline

Fiscal YearFiled
2025Feb 11, 2026Showing above
2024Feb 12, 2025
2023Feb 14, 2024
2022Feb 10, 2023
2021Feb 11, 2022
2019Feb 6, 2020
2018Feb 7, 2019
2017Feb 8, 2018
2016Feb 9, 2017
2015Feb 11, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueFair ValueGoodwill & IntangiblesDebtCommitmentsNew StandardsPay vs Performance